We are sending remunerations to some non residents from our corporate account and it seems that in this financial year the total amount would exceed 5 lakhs and we need to send 15 CB also. We have been generating and uploading 15 CA on own our since last couple of months (FY 18-19) did that for April 2019 too. I have following questions : 1. We have read that there are two ways to submit 15 CB. One by obtaining certificate (u/s 195) from an authorised person and second by engaging a CA. How to obtain the said certificate and if it is obtained, it seems we can upload that on our own along with 15 CA. Correct me if I am wrong. 2. Shall we upload 15 CB only after we exceed Rs 5 lakhs of total payment in a financial (assume that may happen in the month of June 2019) or shall we send from the beginning of the financial year only? If the latter is true, we have not sent 15 CB for the month of April. What shall we do for that?
1) It seems that you are making payment to non-residents without submitting hard copy to your bank. In all the cases, you need Form 15CB to make payment outside India. The bank would not process the payment unless Form 15CB is filed by the CA. You need to engage CA for submission of Form 15CB. Certificate u/s 195 or 197 is for NIL or concessional rate of TDS deduction.
2) You need to upload it from the first payment and deduct the TDS accordingly. You can start from now onwards.
If you are making a foreign payment to any person outside India and if it's above 5 lakh during a year you need to get a certificate in form 15CB from the CA you can't do it yourself.
You don't need form 15CB from CA if the person provides you certificate u/s 197 for lower deduction or no deduction of TDS otherwise it will be required.
You can start it from now on.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you.
Dear Sir,
Hope you are doing well !!
1.Section 195 of the Income tax act, 1961 makes it compulsory to deduct the Income-tax from payments made to Non-Resident. The person making payment/ remittance to non – resident holds the responsibility to furnish an undertaking (in form 15CA) attested by a Chartered Accountants Certificate in Form 15CB. So when a person has to make any payment or remit any money to non-resident, the bank will have to verify the payment of tax and act accordingly.
2.A CA certificate (Form No. 15CB in this case) will be required to be furnished only in case of payments made to non-residents which are chargeable to tax and the amount of payment during the year exceeds Rs. 5 lakhs.
Income Tax Department has now created online facility to file information. Thus the Form 15CA is required to be filed online with the tax department. After that, proof of online submission should be printed out. This copy is required to be given to the Bank as a proof of tax clearance from the tax department.
1. It is not clear whether i) it is required to submit 15CB from the beginning of the of year only ii) only start submitting it from the month it exceeds Rs 5 Lakhs iii) If it exceeds Rs 5 Lakhs say at the month of October, shall 15CB submitted from April or from October only 2. For a month, if total amount remitted is by mistake the amount including TDS, whereas 15CA is submitted for the amount excluding TDS and subsequent TDS is submitted, what shall be the right process to fix this?
1) Form 15CB is required where the aggregate payment during the financial year exceeds Rs.5 lacs and TDS is required to be deducted but generally AD (i.e. your bank) asks for Form 15CB for all types of payment outside India. Therefore you required Form 15CB from the starting of the first payment.
2) If your remitted TDS also to the remitee then you can adjust the excess payment in the next invoice.
The requirement in the act is very loose so if you know that the amount will exceed 500000 it's better to file 15CB from the start.
As per the rule of income tax it says that 15CB is required when the amount exceeds 500000 but considering the general TDS requirements if the amount exceeds the limit the requirements apply from the start. You will recalculate the TDS amount as inclusive and file TDS return properly and get the TDS amount back.
Hi
1. If you have No TDS deduction certificate from the deductee issued by his AO, then you are not required to file Form 15CB.
2. It would be submitted when the payment exceeds 5 lacs.
1. ii) only start submitting it from the month it exceeds Rs 5 Lakhs
2. File a fresh application with correct information.
Dear Sir,
1. It is required to submit only from the month when limit is exceeded.
2. You need to file new application.